Byron School Board approves over $1 million in reductions, cuts

Due to budget shortfalls, discovered late in the year, and because of projected shortfalls for the 2024-2025 budget, the Byron School Board voted to make approximately $1.5 million in budget cuts for the next school year, on May 13.
During a meeting the week prior, the School Board gave the direction to the Administration to find up to $2 million in the budget, however, it was decided by district leaders not to cut the full amount until “a more strategic plan could be made,” due to it being so late in the process.
“Last week, I had to deliver the news to the community and our staff that we will need to make significant cuts as we find expenses are outpacing our revenue,” Superintendent Mike Neubeck wrote in a May 12 newsletter. “As I stated in meetings, this is because of many reasons including the end of over $400,000 in Federal funding from COVID, a projected decrease in student enrollment, increases in health insurance for this year and next year, purchased service increases due to inflation, and expenditures outpacing budget assumptions.”
Decreased Revenues, Costs Increases
District leaders have pointed to a number of challenges attributed to the budget shortfall.
One of the major factors is a 28% increase in health insurance premiums, for a total of $600,000 which the district was informed of in mid-April.
Another factor is an expected enrollment decrease of 20 students, which means an approximately $200,000 hit for the district’s revenue.
The district also pointed to state funding, saying it continues to be a factor, despite “historic funding” approved in St. Paul, in 2023.
“While these investments are appreciated, the funding primarily addressed shortages school districts have endured for years to cover increasing costs for special education and English learners programming,” the district wrote on its website. “Additionally, the education bill included new mandates, programs and requirements with increased costs. Some of these are funded, others partially or temporarily funded, and several with no funding at all.”
Then there’s the reality of Byron being the third lowest funded district in the state per pupil.
The district, like others across the country, will also be seeing the end of Federal pandemic relief funds, which for Byron means a hit of $414,616.
“Before the pandemic, we made budget adjustments on an annual basis to balance the budget,” district officials wrote on its website. “This practice was put on hold when the pandemic hit in part because of the one-time federal pandemic relief funds. A portion of those funds in combination with our fund balance allowed us to pause budget adjustments for the past three years.”
BalancingThe Budget
As part of the cuts, over $900,000 will be coming from staff, with some coming from resignations and retirements not being filled.
Three general education teacher positions will not be filled following retirements/ resignations, along with a counselor, special education teacher, five special education professionals, a special education bus para, and a media technician.
Positions being reduced include the Buildings and Grounds Manager, a School Resource Officer, two Administrative Assistants/ Receptionists, a Technology Support position, along with four evening custodians.
An additional $568,700 worth of cuts will be made from other reductions, including the elimination of a bus route, reductions to the athletic budget, technology budget, district-wide supply budget, among the 17 reductions.
The district also hopes to see a $149,000 increase in revenues, including from a $75 parking permit fee for high school students, increased athletic fees among other measures.
What’s Next?
Following the budget cuts, the District Administration plans to continue to look at how to find cost cutting measures for this year, along with looking at potentially having an operating levy vote in the fall, something the district currently doesn’t have.
Neubeck said in a phone interview Tuesday morning, said conversations are taking place to potentially look at having an operating levy vote on the ballot, something he said would help with revenue long term.
“Part of it is we don’t have an operating levy,” Neubeck said about the budget issues.
Neubeck said unlike many other school districts across the State, Byron never had a per pupil operating levy. Essentially districts, with voter approval could have a per pupil amount taxpayers are taxed for, each year to pay for operating costs.
If the School Board decided to bring a levy vote to the ballot, the decision would need to be made on what the amount would be. The levy would be good for up to 10 years.
“We have been living paycheck by paycheck and now we got hit with some pretty big expenses and now we have to live with that,” Neubeck said.
One of the issues he pointed to with an additional tax is “we don’t have a lot of businesses, so the taxes fall heavily on our residents and we know that.”
“It’s hard for us to go out and ask for more money because of that but it’s something we’re going to need to do at some point,” Neubeck said.
With positions being cut, Neubeck said they know they also need to look at what each person did and make sure it’s covered in some way.
“As people leave they do jobs and they have duties and we’re gonna have to make sure it’s covered,” Neubeck said.
Neubeck said over the next several weeks and months the district will be looking at other ways to tighten the budget, in order to help get the district’s finances back on track.
“I know we’re going to have to make more cuts as we go along,” Neubeck said.
During the summer and throughout the school year, Neubeck said efficiency will be looked at including potentially looking at different spending, focusing on needs and not wants when it comes to purchases.
Ultimately, Neubeck said his hope is the district will come out even stronger, following the turbulent times Byron and other school districts are facing.
“As I stated in my meetings, our school board, leadership team and staff are committed to doing what is right and best for our students, families and communities as we work through these financial challenges,” he wrote in the May 12 newsletter. “We are committed to be transparent, and we will be an even stronger and better district on the other end.”